The crypto shock occurred primarily after the sudden crash of the stable coin TerraUSD and Luna token. A drop in cryptocurrency values has wiped away more than $300 Bn. While Terra’s founder is still optimistic about his plans to revive Terra, Kwon is facing some major backlash in the form of lawsuits, fines, and penalties. The recent crash has emerged as a wake-up call for investors and regulators.
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VC funding sky-rocketed in 2021 with over $643 Bn going into global venture investment. However, the good times do not seem to continue in 2022. After the hyped market in 2021, VCs are now renegotiating their deals. Whether this is a minor correction or has long term impact is a thing to see, till then startups are being advised to use their cash wisely.
Read this article to understand the different reasons for the decline in valuations and the kind of impact it could have on investors and startups.
As cybercrimes and cyber threats are rising, security is becoming a center of discussion for several businesses. 2021 was a record breaking year for cybersecurity startups. VCs had a big appetite for the sector as the deal volume crossed $29 Bn, seeing a YoY growth of over 136%. With cybersecurity demand showing no signs of decline, we expect the sector to continue to rise in the future.
Most Chinese tech companies listed in either the U.S. or Hong Kong experienced a disastrous wave of panic selling. Recently, Stock prices in Hong Kong and China showed significant rebound in their performance after China’s State Council promised to drive the financial markets. While path to an IPO in the Chinese market looks uncertain, we try to see whether Chinese markets are a safe haven for tech companies.
GoTo, the largest technology group in Indonesia, is all set to go public on the Indonesia Stock Exchange (IDX). The company aims to raise over $1.1 Bn. The price range for the IPO is set between IDR 316–346 per share, which could give an estimated market capitalisation of about $29 Bn. It is anticipated that the IPO will be one of the biggest milestones in the region for an internet company. Looking at the fate of one of the highly anticipated tech stocks of 2021, Grab, which is facing a continuous downfall, we try to see whether GoTo will follow a similar path?
Metaverse is the next big tech innovation that has been creating a buzz lately. It is expected that metaverse will expand across almost every sector in the coming years, creating a market opportunity estimated at over $1 Tn in yearly revenues. In 2021 alone, VCs have poured in more than $10 Bn in companies related to startups. While companies like Niantic, The Sandbox, Decentraland, etc. are already working to catch the market early, we look at the possible use cases of metaverse concept across industries.
The growth of SPAC proceeds has been tremendous in recent years, it has grown by 94% to $161 Bn in the year 2021 as compared to $83 Bn in 2020. High-profile names such as 23andMe, Taboola, and BuzzFeed each recently went public via SPAC. Then there’s this remarkable fact that SPACs accounted for 50% of all new publicly traded firms in the US in 2020. However, in 2021, the financial performance of all SPACs has declined. The shell companies that have listed shares i.e., SPAC filing is 606 in 2021 with an average IPO size of 266.5 Mn, 26% less than the previous year’s 336 Mn.
Investing early on in ESOP options of start-ups can offer great returns to the employees. As of November estimates, ten leading start-ups that have been now either listed or preparing to list soon, have generated over $5 Bn returns for their employees through ESOPs. ESOPs convert employees to owners by giving them an opportunity to participate in the future growth of the company by owning a part of it, but also are a great tool to motivate and retain talent.
In India, around 48 startups have already made it to the unicorn club, as per CB Insights data. Well over $38.4 Bn has been raised till December 4th this year, with several of the rounds producing Indian unicorns in 2021. India will manage to get more than 100 unicorns by 2022, much earlier than the previewed estimation of 2023 reports in the past. India’s e-commerce market is predicted to expand at a 19% CAGR from $46.2 Bn in 2020 to $111.4 Bn in 2025, with grocery and fashion/apparel set to be the main drivers of further development.
The demand for ESG-certified investments looks to be unstoppable. According to Bloomberg Intelligence research, global ESG assets under management (AUM) will surpass US$53 Tn by 2025 and will soon represent 44% of the global AUM. More than a third of all AUM in the world would have an ESG imprint in the coming future at this rate. According to GFANZ, private money could provide 70% of the $32 trillion in investment required by 2030 to establish a net-zero economy by 2050.
The large but fragmented logistics sector is emerging as a trustable opportunity for investors. The digital transformation that has come up recently is reviving the $200 Bn logistics industry in India, and more so as these startups are keen on using technology to bring down the logistics costs in the country. With greater government support on infrastructure and an expected rise in the B2C and B2B trade in the coming years, logistics companies are set to grow.